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Expanded FOM approved for Missouri highway CU

JEFFERSON CITY, Mo. (4/7/11)--The Missouri Division of Credit Unions approved a community charter to expand the field of membership (FOM) for District 4 Highway Employees CU in Lees Summit, Mo. The credit union is one of 10 credit unions who are losing their locations in Missouri Department of Transportations (MoDOT) facilities. The expanded FOM will allow all those who reside or work in Jackson County, Mo.--whose estimated population is 705,708, according to a 2009 U.S. Census Bureau estimate--to join the credit union (Missouri Division of Credit Unions Electronic Bulletin March 10). It was determined that the credit union is well-capitalized, following the most recent supervisory examination report by the National Credit Union Administration. The $13.2 million-asset credit union was one of 10 credit that the Missouri Highways and Transportation Commission decided to sever ties with, after the commission approved a staff recommendation in March 2010, according to the Missouri Credit Union Association (MCUA) (News Now March 12, 2010). The credit unions were told Jan. 21, 2010, that they would be required to vacate their locations by Sept. 30, 2010. They would no longer be able to process payroll and benefits through MoDOT after that date. Credit union employees were on MoDOT’s salary and benefits plan, but credit unions fully reimbursed MoDOT for those costs, MCUA said at the time. Following pressure from MCUA, state lawmakers and the Missouri Division of Credit Unions, the final proposal offered to the Highway Commission for approval extended the move-out date to Dec. 31, 2012, and included waiving billing for salary and benefits for one quarter--totaling about $325,000 for the credit unions. However, the credit unions were asked to begin paying rent on their space in MoDOT facilities beginning Jan. 1, 2011. The commission ratified MoDOT staff’s recommendation.